Substantially higher US investment grade stress going into 2023
The Federal Reserve Bank of New York’s Corporate Bond Market Distress Index (CMDI) is closing 2022 with investment grade US bond markets twice as distressed as...
Liberty Street Economics asks: How Is the corporate bond market functioning as rates rise?
The Federal Reserve Bank of New York’s market structure and macro analysts, Liberty Street economics, has examined how corporate bond market functioning has withstood...
Absorbing Gilt
The year after next, the UK is set to issue £305 billion gilts to support the government’s spending programme. The high level of issuance...
The vicious circle of trust and liquidity
Looking at data provided by CreditSights, we can see the extent of lenders’ concern about Credit Suisse this year. The cost of insuring Credit...
Barnes on Bonds: Primary Gilt Trip
To see political risk writ large in financial markets, look no further than the UK. While Rishi Sunak has won the race to be...
If you go down to the woods today…
The bond market is bearish at a historical level according to analysis by BofA Securities, with high yield down -16.7%, investment grade down -19.3%,...
Less distressed debt
The risks of default in high yield credit are one reason cited for reduced sell-side trading activity in the asset class. However, while the...
Chart of the week: ECB rates rise expectations
Expectations on the European Central Bank’s appetite to increase its interest rate will have a direct and negative impact on European bond trading which...
The implication of falling US HY Issuance
Anecdotally, we hear that new issuance of high yield bonds in European markets directly impacted secondary market liquidity. Looking at the latest data from...
Emerging Markets Focus Part 1: What the flows mean for traders
Fixed income sector investments have proven worst for emerging markets funds year to date, according to data from JP Morgan and Bloomberg indices, driving...
